EAC member states reinstate tax waiver on motorcycle parts
Motorcycle taxi riders in Nyamirambo Stadium, Kigali. Motorcycle assemblers in the region have won a reprieve after the regional council of ministers reinstated a special tax waiver on imported motorbike parts. File
Motorcycle assemblers have won a reprieve after the regional council of ministers reinstated a special tax waiver on imported motorbike parts, raising hope for growth in the sector. The assemblers were until June 31 faced with a 15 per cent tax introduced last year on imported motorbike parts, commonly known as completely knocked down kits (CKD).
The unpopular tax move meant that motor firms were forced to pay the full 25 per cent tax to import spare parts, which is the equivalent of duty paid for finished motorcycles under the customs union protocol.
